Page:United States Statutes at Large Volume 43 Part 1.djvu/301

 270 six*rY-EIGHTH CONGRESS. sms. 1. GH. 234. 1924. I¤,';',§3*gj_"{,g{)%S_ (2) All interest paid or accrued within the taxable year on in- Exwpuou. debtedness, except on indebtedness incurred or continued to purchase or carry obligations or securities (other than obligations of the United States issued after September 24, 1917, and originall · subscribed for by the taxpayer) the interest upon which is wholly ex-, em t from taxation under this title; Tm P"` (gi) Taxes paid or accrued within the taxable year except (A) in- E‘°°°°°”‘ - come, war—profits, and excess-profits taxes imposed by the authority of the United States, (B) so much of the income, war-profits and excess-proiits taxes, im sed b the authority of any foreign country or possession of the Uiriiited Sitates, as is allowed as a credit under section 222, (C) taxes assessed against local benefits of a kind tending to increase the value of the property assessed, and (D) taxes imposed_upon the taxpayer upon his interest as shareholder of a Mmm 0, um, corporation, which are paid by the corporation without reimburse- •e¢.,¤¤s. ment from the taxpayer. For the purpose of this paragraph, estate, inheritance, legacy, and succession taxes accrue on the due date thereof except as otherwise provided by the law of the jurisdiction Hmmm kmS_ imposing such taxes; _ (4)  sustained during the taxable year and not compensated mm mt mmmd for by msurance or otherwise, if incurred in trade or business; w1¤¤¢r¤d¤•¤·b¤¤i¤¤¤- (5) Losses sustained during the taxable year and not compensated for bg insurance or otherwise, if incurred in any transaction entered into or profit, though not connected with the trade or business; but 111 the case of a nonresident alien individual only if the profit, if such Rcmcumutcmw transaction had resulted in a proiit, would be taxable under this title. ¤f¤¤¢k.¤¤=- No_ deduction shall be allowed under this paragraph for any loss claimed to have been sustained 111. any sale or other disposition of shares of stock or securities where It appears that within thirty days before or after the date of such sale or other disposition the taxpayer has acquired (otherwise than by bequest or inheritance) or has entered ritigto adcqptract or option to acquire substantially identical prope, an the pro rty so a uired is held b the tax er for ,,,;§'°"““°°'°"’°"°' any period after such giile or othegr disposition. lf such aggiiisition or the contract or option to acquire is to the extent of part only of substantialliyi 1dentica1 property, then only a proportionate part of connected was me urm e axa e - ¤~·=· ··=- ==··= “"2é§’“LZE2a Z3s°tLi?}i3`Zfd* a t bl f ·»-··1···~·. ma,.] with as tad, or buginess (ba £{°?£t°c§’,2°%i"Z $.523. dent alien individual only property within the United States) if Bmmordetmumm arising from fires, storms, Sh1¥WI'BCk, or other casualty, or from ummm. theft, and if not compensated or by insurance or otherwise. The basis for determining the amount of the deduction under this paragraph, or paragraph (~})_0r (5), shall be the same as is provided in Mit 1>· 258· section 204 for determining the gain or loss from the sale or other wmhm debu disgosition of property; g Debts ascertained to be_worthless and charged off within the taxa le year (or, in the discretion of the Commimioner, a reasonable addition to a reserve for bad debts) ; and when satisfied that a debt is recoverable only m part, the Commissioner may allow such debt Exhausticn etc. of to be charged OE m part; mmm ,,,,,;,,,,_· (8) A reasonable allowance for the exhaustion, wear and tear of property used in the trade or business, including a reasonable allow- .,a2··a ··¤ ··=¤ M ““$§f°1E,°E’§212§°S2“§§§¤i.sS 0-1 .1 ll h sngeggeggaticyggj and timber, a reasonable allowanceaor deplietion and lfggltgiegrzsdfj tion of improvements, according to the peculiar conditions in each casie; such reasonable allowance in all cases to be made under rules mms. apovgleggif 2i§é>1§ to the prescribed by the Commissioner, with the ap- P GCM 3127. In the case of leases the deduction allowed
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